We are facing a tricky situation where the management is thinking of terminating a few senior-level employees. The reason is a mix of non-performance plus the financial situation of the company, which may not be able to bear the burden of all highly salaried employees.
From my experience in such situations, the employee is asked to agree to a voluntary resignation with the due notice period. However, I have been asked to draft a letter as well. This is where I need help. The standard termination letters usually cite reasons such as non-performance, misconduct, etc., but this one is different.
Let me know if anyone has a format of this nature. Even a redundancy letter format would suffice.
This requirement is a little urgent.
From India, Delhi
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From my experience in such situations, the employee is asked to agree to a voluntary resignation with the due notice period. However, I have been asked to draft a letter as well. This is where I need help. The standard termination letters usually cite reasons such as non-performance, misconduct, etc., but this one is different.
Let me know if anyone has a format of this nature. Even a redundancy letter format would suffice.
This requirement is a little urgent.
From India, Delhi
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It is always better to ask those senior employees to give voluntary resignation so that they leave the organization with due respect. Else, extremely difficult business and economic situations can be the grounds for retrenchment.
Regards,
Kamal
From India, Pune
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186Regards,
Kamal
From India, Pune
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Dear Anuradha,
It is called retrenchments, not termination. I think the head of the department can talk with them about the financial situation of the company and also inform them that their services are no longer required. Please suggest submitting a mutual resignation and assure them that in the future, if needed, they can be called back.
Alternatively, inquire about taking a long leave without pay, as the company cannot afford their salaries in the current situation. Many of them may be willing to resign automatically.
You can also directly inform them:
This is to inform you that you were appointed as Assistant Manager C.S in the Customer Services department of our company effective from 7th Feb, 2011. However, due to irregularities in punctuality and negligence of duty on your part, management has decided to terminate your services as of 30th June, 2011.
Your services are terminated with immediate effect. Please collect your dues from the Account Department.
Thank you.
From India, New Delhi
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It is called retrenchments, not termination. I think the head of the department can talk with them about the financial situation of the company and also inform them that their services are no longer required. Please suggest submitting a mutual resignation and assure them that in the future, if needed, they can be called back.
Alternatively, inquire about taking a long leave without pay, as the company cannot afford their salaries in the current situation. Many of them may be willing to resign automatically.
You can also directly inform them:
This is to inform you that you were appointed as Assistant Manager C.S in the Customer Services department of our company effective from 7th Feb, 2011. However, due to irregularities in punctuality and negligence of duty on your part, management has decided to terminate your services as of 30th June, 2011.
Your services are terminated with immediate effect. Please collect your dues from the Account Department.
Thank you.
From India, New Delhi
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Dear Anuradha,
Such issues should be handled with more sensitivity and concern for people, rather than in a routine manner. Your senior employees have given their best for the organization; now terminating their services unilaterally on the basis of non-performance - is it justified? If it's on account of the financial conditions, then this should be communicated in a befitting and transparent manner.
Warm regards.
From India, Delhi
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Such issues should be handled with more sensitivity and concern for people, rather than in a routine manner. Your senior employees have given their best for the organization; now terminating their services unilaterally on the basis of non-performance - is it justified? If it's on account of the financial conditions, then this should be communicated in a befitting and transparent manner.
Warm regards.
From India, Delhi
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Ref: Our appointment letter dated 12/03/2011
It has been observed by the Management that your performance is not up to the mark. Hence, your services are not required by the Management. As per Clause 09 of your appointment order dated 12/03/2011, either party should give one month's notice for terminating the services. Accordingly, the management issues two months' notice, and you will be relieved from our services wef 30/06/2011. Please make a note of it.
For Pyoginam Manager (P&A)
From India, New Delhi
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It has been observed by the Management that your performance is not up to the mark. Hence, your services are not required by the Management. As per Clause 09 of your appointment order dated 12/03/2011, either party should give one month's notice for terminating the services. Accordingly, the management issues two months' notice, and you will be relieved from our services wef 30/06/2011. Please make a note of it.
For Pyoginam Manager (P&A)
From India, New Delhi
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I fully agree with Mr. Raj Kumar Hansdah, such a critical matter should not be andled in a routine manner. regards, Kamal
From India, Pune
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From India, Pune
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Hi Anuradha,
Imagine yourself in their place and then think; being in HR, it's your responsibility to handle this case with more sensitivity, as suggested by Mr. Raj Kumar. Just writing a letter and handing it over to them? No, they should be sent in a dignified manner.
From India, Delhi
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Imagine yourself in their place and then think; being in HR, it's your responsibility to handle this case with more sensitivity, as suggested by Mr. Raj Kumar. Just writing a letter and handing it over to them? No, they should be sent in a dignified manner.
From India, Delhi
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I appreciate all the advice given here. I myself am not in favor of any letters; however, I have been asked to prepare one just in case.
I have penned down something like this:
"This is further to our meeting with regards to / you are already aware of the financial constraints that the business is facing. For various reasons, both external and internal, we have not been able to meet our projected revenue targets. In the wake of the current and future prospects of the business, the management has decided to rationalize its activities and expenses through various means, including a reduction in headcount.
After a comprehensive analysis of the manpower utilization and individual performances, the management has decided to relieve you from the services of the organization with effect from <date>, giving you one month's notice as per your employment contract.
It is with regret that management takes this action but has no other choice."
Please let me know if this may have any legal implications. Does it sound like retrenchment and therefore call for some additional compensation? In fact, what are the legalities around retrenchment in the service sector?
From India, Delhi
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I have penned down something like this:
"This is further to our meeting with regards to / you are already aware of the financial constraints that the business is facing. For various reasons, both external and internal, we have not been able to meet our projected revenue targets. In the wake of the current and future prospects of the business, the management has decided to rationalize its activities and expenses through various means, including a reduction in headcount.
After a comprehensive analysis of the manpower utilization and individual performances, the management has decided to relieve you from the services of the organization with effect from <date>, giving you one month's notice as per your employment contract.
It is with regret that management takes this action but has no other choice."
Please let me know if this may have any legal implications. Does it sound like retrenchment and therefore call for some additional compensation? In fact, what are the legalities around retrenchment in the service sector?
From India, Delhi
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Hello Anuradha Gupta,
What Raj Kumar, Pon, Archna, and others have said is right—handle with an extra dose of finesse in such matters. And please desist from putting this issue/request in writing from the company's end. I suggest taking time for a meeting with each of them and going to the cabin/room of each senior employee to talk it out—the final request being the resignation from each of them. Make it a one-to-one meeting—never try to handle all (even if it's two) of them together for such discussions.
By this gesture, you will be introducing the 'personal/human touch' into the whole issue and also take the opportunity to clarify any concerns each of them may raise face-to-face. Additionally, ensure you preempt any ideas by any of them to go the legal way later on. One can never assume human responses in such traumatic conditions until the situation evolves, and then it could be too late for you to make any course corrections from your end.
Regards,
TS
From India, Hyderabad
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What Raj Kumar, Pon, Archna, and others have said is right—handle with an extra dose of finesse in such matters. And please desist from putting this issue/request in writing from the company's end. I suggest taking time for a meeting with each of them and going to the cabin/room of each senior employee to talk it out—the final request being the resignation from each of them. Make it a one-to-one meeting—never try to handle all (even if it's two) of them together for such discussions.
By this gesture, you will be introducing the 'personal/human touch' into the whole issue and also take the opportunity to clarify any concerns each of them may raise face-to-face. Additionally, ensure you preempt any ideas by any of them to go the legal way later on. One can never assume human responses in such traumatic conditions until the situation evolves, and then it could be too late for you to make any course corrections from your end.
Regards,
TS
From India, Hyderabad
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Termination of employees.pdf